History of banks

History of banks

                               

1,800 BC
The idea of banks began as long ago as 1,800 BC in Babylon.
In those days moneylenders made loans to people.
In Greece and Rome banks made loans and accepted deposits and they also changed money.
12th and 13th
With the collapse of the Roman Empire trade banking began to revive again in the 12th and 13th centuries in the Italian towns of Florence and Genoa.
16th
In the 16th century a German family called the Fuggers from Augsburg became very important bankers.
17th
Banks began in Britain.
Banks developed in England
Sometimes people deposited their money with goldsmiths for safety. The goldsmiths issued a note promising to pay the bearer a certain sum on demand. In time people began to exchange these notes instead of coins because it was easier and safer
Banks paid interest to people who deposited money in order to attract their savings.
Not only individuals borrowed money but also governments needed to borrow.
The government borrowed money from wealthy individuals and later repaid them with interest from taxation.
In 1694 the Bank of England was founded to provide a loan to the government.

18 th
Many small banks were founded in the provincial towns.
19th  20th  
Banks the use of cheques for drawing money
Settling accounts became much more common.
 Many banks merged until in the late 20th century banking was dominated by the 'big four', Barclays, Lloyds, Midland and National Westminster.